Tower Resources, a U.K. oil and gas company, has signed farm-out agreements with Prime Global Energies, allowing Prime to acquire non-operated interests in Tower’s Thali license offshore Cameroon and PEL96 offshore Namibia. The agreements entail significant cash contributions, expected to facilitate the drilling of the NJOM-3 well in 2025 and strengthen Tower’s operational capacity.
Tower Resources, a United Kingdom-based oil and gas enterprise, has formalized two farm-out agreements with Prime Global Energies, granting non-operated interests in its Thali license located offshore Cameroon and PEL96, which is offshore Namibia. Under the agreement, Tower Resources Cameroon will transfer a 42.5% non-operated interest in the Thali license to Prime for a cash contribution of $15 million aimed at funding the Thali work program and drilling the NJOM-3 well in 2025.
The exact drilling schedule for the NJOM-3 well is contingent on the timing of governmental approvals for the Thali transaction and an extension to the First Exploration Period, which is currently set to expire on February 4, 2025. This timing will further rely on available rig slots post-completion, taking into account the necessary mobilization time for equipment and personnel.
Additionally, Tower Resources (Namibia) will welcome Prime’s participation, securing a 25% non-operated interest in PEL96. The financial arrangements encompass immediate cash payments totaling $4.4 million, which includes $937,500 payable right away and another $3.4 million upon completion of the farm-out agreements. It is anticipated that both agreements will be finalized by the conclusion of the first quarter of 2025, pending requisite approvals.
Jeremy Asher, the Chairman and CEO of Tower Resources commented on the significance of the funding: “For our Thali license, the funding provided should enable Tower to drill the NJOM-3 commitment well, which will mark a significant milestone for the company.” This strategy illustrates Tower’s commitment to advancing its asset portfolio while ensuring stakeholder value is consistently delivered. The alterations in the Pegasus Facility Agreement during negotiations also highlight the flexible approach taken to enhance Tower’s interest in its licenses.
Tower is poised to utilize the additional liquidity from these agreements to execute its work programs with renewed assurance and vitality.
The recent farm-out agreements by Tower Resources signify a strategic partnership aimed at enhancing operational capabilities in offshore oil and gas exploration. The Thali license in Cameroon and PEL96 in Namibia present substantial growth possibilities, and the financial backing from Prime Global Energies is instrumental in advancing these initiatives. The approval processes involved highlight the complexities of the oil and gas sector as companies navigate regulatory landscapes while optimizing resource management and investment.
In summary, Tower Resources has successfully secured farm-out agreements with Prime Global Energies, enabling significant cash inflows to support their exploration activities in Cameroon and Namibia. The strategically timed drilling of the NJOM-3 well and the financial arrangement around PEL96 represent pivotal movements for Tower, enhancing its operational footprint and financial stability while addressing the needs of stakeholders in the oil and gas industry.
Original Source: www.oedigital.com
